1. Introduction

Modern power systems are facing several challenges related to the transition from a traditional, fossil fuel-based, and vertically integrated architecture to a smart, sustainable, renewable generation-based, and deregulated system. Smart grid is the key concept that allows this transition and enables a series of innovative applications thanks to the integration of information and communication technologies into power systems.

Smart grids involve two-way electric and information flows across generation, transmission, distribution, and utilization systems, to improve their efficiency, sustainability, reliability, and resilience compared to traditional grids. The attribute "smart" reflects the layer of intelligence added to the power system that is able to sense power system's conditions, interact with producers and users, and react to any unexpected conditions.

Figure 1 describes the main differences between traditional and smart grids [1–3]. The concept of a smart grid was developed in order to reach a set of goals:


In order to support the evolution of existing power systems from static and hierarchical networks to decentralized and self-healing systems composed by cooperative and self-organizing energy resources, a commonly accepted framework must be established. To this aim, in this chapter the most promising enabling technologies will be presented, and the possible research directions aimed at

It distinguishes seven different functional areas in smart grids, called domains. Each domain is characterized by a set of actors and applications that perform actions on energy and data inside the domain and allow the exchange of power and information between domains, by means of different interfaces, also called domain gateways. The next sections describe the main features of each domain and the related key

Introductory Chapter: Open Problems and Enabling Methodologies for Smart Grids

This domain collects all the actors and the applications related to the centralized generation of large amounts of power, optimally dispatched in order to satisfy the predicted demand. In traditional power systems, characterized by one-way power

This domain has communication interfaces to market, operation, and transmis-

Transmission infrastructures allow the efficient transfer of electrical power from generators to distribution systems. Their main components are high-voltage power lines, substations, sensors, and protection systems. Their correct operation and maintenance is entrusted to transmission system operators (TSOs). The evolution of power systems toward smart grids is leading to the development of several innovative technologies to improve power transmission's reliability and efficiency [5]. The most impactful ones are advanced power electronic-based systems, such as flexible AC transmission systems (FACTS), that enhance controllability and

Market domain is where prices for power exchanges are established. Currently, electricity markets are changing in order to fully exploit the possibilities introduced

Market domain is connected by communication paths to every other domain. It receives information regarding system's state and constraints by the operators and service providers and proceeds to dispatch generated power in order to satisfy the

Communications between market domain and the other ones must be secure, reliable, and transparent and with low latency in order to correctly operate the

Future power systems include a more active participation from the customer's

Virtual power plants (VPPs) are a smart management paradigm consisting in

dispatchable ones, flexible profitable loads, and storage units in order to maximize

coordinating generating units with different characteristics, stochastic or

side, thanks to the integration of demand-side management paradigms or the aggregation of various distributed generation and loads in the so-called virtual

The importance of this domain is not only due to the production of a high percentage of the total required power but also due to the ancillary services it offers

sion domains, although it is electrically coupled only to transmission network.

flows, this was the only domain in which power was produced.

increase power transfer capability of transmission systems.

in order to maintain stability and security of the whole power system.

technologies.

2.1 Bulk generation

DOI: http://dx.doi.org/10.5772/intechopen.86496

2.2 Transmission domain

2.3 Market domain

by future smart grids.

demand.

system.

3

power plants.

2.3.1 Virtual power plants

Figure 1. Comparison between traditional grid and smart grid [1].

#### Figure 2. NIST conceptual model [4].

addressing some challenging open problems, which could hinder their deployment in existing power grids, will be outlined (Figure 2).
